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This is Later with Lee Matthews The
Lee Matthews Podcast More what You Hear weekday

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afternoons on the Drive. Jordan Belfour
is a consultant for more than fifty public

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companies and has written about it virtually
every major newspaper and magazine, including The

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New York Times, Wall Street Journal, Los Angeles Times. His best selling

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novel, The Wolf of Wall Street, inspired the Oscar winning film of the

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same name. Jordan Belfort's new book
is The Wolf of Investing, my insider's

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playbook for making a fortune on Wall
Street. But let's get back to The

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Wolf of Wall Street inspiring the movie. Jordan, You mean there weren't piles

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of cocaine on every desk and blue
chip hookers walking through the halls. Yeah,

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there was was Welcome to the to
the eighties on Wall Street, a

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different time and place before before you
on smartphones and everything was photographed. Yet

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yeah, the fact that you did
stuff and like there're stone at a camera.

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They try to tigu you. They
were holding a huge videocademy, Like

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what's that camera for now? It's
like everyone's very difficult, you know.

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Well, in The Wolf of Investing, you pull back the curtain of what

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you've coined the Wall Street theme machine
complex. How do you mean? So

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here's the thing. Wall Street is
a funny place because it is it's like

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a two headed monster. On one
side of one head, wall Street does

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incredibly important work and gives massive value
to the US economy. And without Wall

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Street we'd be really screwed. We
would not have the economy we have,

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the lifestyle we have, the statement
of living you have, just would because

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Wall Street provides financing and investment in
the capital markets and the credit market.

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So Wall Street is absolutely mission critical
for that. But then the other side

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they raped and pillage the village and
create bubbles and rip people's eyeballs out and

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convinced them to be engaged in things
like short term trading and trying to time

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the market. And that's the terrible
side of Wall Street. So the book,

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the strategy I talk about in the
book is very simple. It allows

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you to extract to maximize. It
says your ability to get all that value

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that Wall Street creates, but not
get caught up in the corrupt casino.

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So like that, which is really
what short term trading on Wall Street is.

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It's a corrupt casino. So because
not only is the casino or any

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casino, it's stacked against the player. Right, So in any casino,

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do odds are against you slightly five
percent, six percent depending on the game.

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But imagine the only casino where the
dice are also loaded against you,

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so to double where me? But
that's Wall Street? So how the question

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is how do you take advantage of
all the value that Wall Street creates?

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Because if you create value without having
to play in the corrupt casino, there's

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a solution to that, and that's
what I give to the of the reader

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in the book. So it's a
very simple way that you can participate and

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get all the massive value in that
Wall Street creates and build a portfolio like

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that that's a long term portfolio and
others. You're not trading in and out,

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you're holding the right stocks and it's
all done for it. It's it's

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so simple to do and believe it
or not when you follow this strategy.

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This is a proven strategy. So
it's again it's not like I invented it.

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I'm just explaining it in the way
and hopefully it's very accessible that people

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will understand because you know, it
seems I think one of the promises will

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have is that you say, Okay, I only have ten thousand dollars to

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invest. I'm just picking number right
on some smaller amount of money. How

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am I going to get rich with
ten thousand dollars Because there's not enough and

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I have to find the next Apple
computer to get rich on that, right,

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I can't just you know, but
that's not true because when you invest

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properly over the long term, something
called long term compounding comes into play.

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So if you reinvest your dividends and
start adding to the positions a little bit

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of money, give me fifty to
one hundred dollars a month, over time,

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you have millions of dollars waiting for
you when you're ready to retire.

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That's the secret. And so I
go through this very simple strategy of how

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you set up the right accounts,
which funds, and you're going to be

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buying index funds, not individual stocks. Now, if you want to speculate,

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that's different. You can put aside
five percent of your capital and have

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fun and speculate, but don't expect
to make money on that. Expect to

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have fun and maybe to get lucky. You'll make money. But if you

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follow the advice in the book,
which is basically having a few key positions

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that you're holding for the long term, reinvesting your dividends, and just having

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patience. Again, nothing in life
is guaranteed, but this is as close

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as you can get on Wall Street
with one hundred and fifty years of history

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and academic studies on your side that
says if you do this, you're going

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to end up retiring rich. That's
basically what the book goes through. The

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Wolf of Investing my Insider's playbook from
Making a Fortune on Wall Street. Jordan

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Belford is the author. You know
him as the Wolf of Wall Street.

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Jordan, I'm so happy to hear
you say what you just said, because

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lovely wife is my financial investor.
She's my financial consultant. She's got a

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degree in finance and a degree in
nursing, so I say she's a financial

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nurse. But she has just recent
we started to dabble in what you just

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described, investing a little amount and
some dividend stocks that we know are good

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and secure energy stocks, and she's
rolled those dividends back in and UH is

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going to build from there. Yeah, and that's that's the secret. I

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think. I go One step further
is to tell your wife if she's not

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listening right now, is that you
know she doesn't even have to pick the

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right stocks. That that's where we
that's when we get into trouble. Human

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beings is a really opting it's it's
just it's a great truth that human beings,

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by our very dna with awful stock
pickers, we just take to pick

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the wrong stocks. We try to
pick stocks and time the market, we

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end up usually shooting ourselves in the
foot more often than not. There's a

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way around that. There's a way
around trying to pick stock. That is

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to go and buy the index,
the actual all of the stocks and that

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that are being managed by by essentially
a company called S and P standard p

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was and never a committee that picks
five hundred biggest stops and they keep changing.

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So every three months if a company's
not doing as well, or it's

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spoiling out of favor, or let's
say there a certain sector is becoming less

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important in the economy, they adjust
these the weighting of these five hundred stocks.

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So if you own this index and
you can just buy it, you

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know one of the time you ENTI
buy the index from certain companies that fell

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it with no fees attached. Right. And if you do that, you're

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going to always especially be in the
right because other big funds have to chase

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me, and if they're rebuying it, they'll buy the fault but a self

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fulfilling prophecy. So all you have
to do is put it in the right

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type of account. You want to
put it in as many packs three accounts

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as possible. Right, it's your
Ira roy diarrhea for a one k,

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right, and then the rest would
just turn a regular account. But have

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the discipline you set to reinvest the
dividends and a little bit of money as

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much as you can each month to
the position. And you'll be shocked that

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even a small amount of money turns
into millions of dollars over a long period

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of time. That's the secret,
and he gives you the secret and the

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wolf of investing, and Jordan Belford
is with us. One of the things

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you pose is to not have a
professional, earn an expert to manage your

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money for you. You can do
better by yourself except your wife, right,

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right, But he hesitates, yes, And I'll tell you why a

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right, And this is this is
the trap because we've been conditioned, and

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rightfully so, to seek out experts
to help us get the best results possible

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for certain things in your life.
For example, you know, if you're

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really sick and you need to get
surgery, it's your pennis is about the

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first. You'd be far better off
finding a doctor, a surgeon to do

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the surgery than trying to do it
yourself. If the pipe's in your house

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burst and the water's leaping all over, you're going to get a much better

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result by going out and hiring a
licensed plumber of expert to fix your pipe.

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Safe thing goes. If you have
a short circuit your house, don't

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try to fix it yourself. Go
fire like you canna do much better there

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too, right. However, the
one exception to this is hiring an expert

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to manage your money to get you
a better results. They will not.

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It's almost guaranteed they will. It's
almost never happens that the expert beats just

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simply the novice who just buys the
indexes, because after they dec their fees,

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their commissions, and they then of
course they not not just these and

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commissions, but also if you get
sewing your money to manage, right,

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imagine if they just take the money
and they put it into an index fund

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that does no trading, You'll say, well, why am I paying you

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a fee if you're not doing any
trading. So it's almost they're forced to

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clean activity to justify their existence.
So even though it's fought less efficient to

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trade in and out and it's less
tax atition as well, they're forced to

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because they need to have justify in
their own existence. So you're set up

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with experts are engaging in more short
term strategies. They are unable to beat

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the market because the market is very
efficient, so you end up with a

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worse result by hiring an expert and
simply doing yourself. Put your money into

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the right type of fund okay,
that has no fees with an expense,

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really no management fee. There's nothing
mad as it's happened. You have virtually

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no expenses because the fund is designed
to have no expenses, and you're just

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having patient that you are just actively
adding a little bit of money. That's

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all what you need to do.
Then, of course there's a couple of

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other investments you want to have in
there to balance out the ups and downs,

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because again you'll have some years where
it might go down, but over

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the long term, it always goes
up over the long term. And that's

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the secret. So you do not
need someone to sit there and tell you

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what to buy, when to buy
it. It's going to get you a

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far worse result than following the advice. I'll give you the book and every

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app academic study, every study by
you know, they go back to what

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I think eighteen eighty. Every study
says this is the way to do it,

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and he tells you all about the
way to do it. Jordan bell

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Fort, New York Times best selling
author of The Wolf of Wall Street,

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The Wolf of Investing, My inside
utters playbook for making a fortune on Wall

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Street. It's worth a read,
and I thank you for joining us.

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Thank you very much. Thanks for
listening to Later with Lee Matthews, the

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Lee Matthews Podcast, and remember to
listen to The Drive Live weekday afternoons from

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five to seven and iHeartMedia Presentation